Canada’s Freeland returns to Washington for NAFTA talks


"Maybe that helps us all put into perspective the negotiations that we're having and put into historical significance the relationship between Canada and the United States", Freeland said.

U.S. President Donald Trump has threatened to push ahead with a bilateral deal with Mexico, effectively killing the nearly 25-year-old three-country NAFTA pact, which covers $1.2 trillion in trade.

Canada's Foreign Minister Chrystia Freeland will again meet with US Trade Representative Robert Lighthizer on the rewrite of the 25-year-old trade deal, Freeland's spokesman Adam Austen told AFP.

Talks were expected to resume this week between the two. President Donald Trump has struck a trade deal with Mexico and threatened to push ahead without Canada, a move that would kill NAFTA, which covers $1.2 trillion in trade between the three countries, and further spook financial markets. "Nafta has been the worst trade deal ever". Canadian officials had said previously that they are working on the assumption that they have until the end of September to make a deal.

The two sides have so far been unable to break an impasse over US access to the Canadian dairy market, a cultural exemption for Canada and the Chapter 19 dispute resolution mechanism.

Major stumbling blocks for Ottawa and Washington remain: an worldwide system for resolving disputes, Canada's protected dairy industry and Canadian cultural subsidies.

Prime Minister Justin Trudeau said just last week that the process was needed, because Trump "doesn't always follow the rules."

Data released on Wednesday showed the USA trade deficit hit a five-month high of $50 billion. Both sides did a lot of thinking over the weekend, so this was a very productive meeting.

No word yet on when she might return to Washington to continue NAFTA talks.

Candian Foreign Minister Chrystia Freeland walks out of the U.S. Trade Representative's office to speak to journalists in Washington, U.S., August 28, 2018.

Former federal Canadian trade official Matthew Kronby said the reported American demands indicate to him that the White House doesn't really want to strike a deal with Canada. Under U.S. trade negotiating laws, a text for that agreement is due by October 1.

The largest percentage gainer on the market was Parex Resources, rising 86 cents, or 4.6 percent, to 19.77 Canadian dollars while cannabis company Aphria jumped 1.33 dollars, or 6.5 percent to 21.71 Canadian dollars and Canopy Growth rose 1.9 percent to 69.02 Canadian dollars. "That's not who we are", Craft said in prepared remarks.

In 2016, after yielding greater market access under the European Union deal, Trudeau's government paid dairy farms and processors hundreds of millions of dollars to compensate and is expected to pay out again for the Pacific deal. He recalled that the State of Wisconsin alone produces as much milk as the whole of Canada.

USA officials say time is running out to agree on a text on which the current Congress can vote.